Indian government offers property tax waiver for hoteliers and restaurateurs

The state of Gujarat announced that fixed electricity charges have been waived, so hoteliers and restaurateurs only have to pay for what was used  

This is a huge comfort to the hospitality sector, which has been experiencing significant revenue contraction. Source: Radiokafka/Shutterstock

According to ET, Indian hoteliers and restaurateurs are in major relief, as the government of Gujarat announced a complete waiver of property tax for hotels, restaurants, resorts, and water parks.  

The state also issued a waive for fixed electricity charges, so hoteliers, restaurateurs, and owners of water parks and resorts only have to pay charges for what was used.  

This is a huge comfort to the hospitality sector, which has been experiencing significant revenue contraction since the arrival of the pandemic.  

Jay Sudhakaran, general manager, Novotel Ahmedabad, said, “The property tax waiver is welcome after the roller-coaster ride that the industry has been through with the first and second waves of Covid-19 cases. This is a progressive step by the state government.” 

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“The industry has been feeling forgotten with restrictions on business and hotel staff not being considered frontline workers. This news is a welcome change and will help many who are struggling with their business,” Sudhakaran added.  

Representations regarding the issue were made to the state government by the Hotels and Restaurants’ Association (HRA) and Gujarat Food Entrepreneurs’ Alliance (FEA) in Ahmedabad. 

Narendra Somani, president, HRA, Gujarat, said, “Rising rentals, increased operating costs and lack of revenue due to restrictions hurt the business of restaurants and hotels in a big way and the decision to waive fixed electricity costs and property tax will ease the financial burden on hoteliers.”  



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